Select Wired Network or the name of your wireless network, if you’re prompted to do so.

Select Test Xbox Live Connection.

Solution 3: Check where the pre-paid code was purchased

If the previous solution didn’t resolve the issue, check where the prepaid code was purchased. Some prepaid codes can’t be redeemed outside the country or region where they were purchased. Other prepaid codes, especially those purchased online, are intended to be sold and redeemed only in the United States. If you’ve purchased one of these prepaid codes and your account is in a different country, you might get this error.